Gold price prediction: Gold rate witnesses volatile October, check prices to target for bullion precious metal

Gold has begun the October in a volatile mode. Gold price jumped up today after hitting a two-month low in the previous session. Spot gold rose 0.3 per cent to $4,122.99 per ounce, having touched its lowest level since August 5 on Wednesday as a firmer dollar and higher US Treasury yields weighed. US gold futures for December delivery added 0.18 per cent to $4,147.90.

Spot silver fell 2.2 per cent to $58.8476, platinum strengthened 1.6 per cent to $1,656.88 and palladium climbed 0.8 per cent to $1,133.65.

Gold Price Prediction


Gold rate's topsy-turvy momentum comes as investors assessed the minutes of the US Federal Reserve's September meeting for clues on its interest rate trajectory.

Prices are wobbling above $4,100 as geopolitics stoke inflation fears and year-end Fed hike bets, said Lukman Otunuga, senior research analyst at FXTM, adding that a stronger dollar and Treasury yields could weigh further on gold.

The technical picture adds to the downside risk. A sustained break below $4,100 opens a path toward $4,000, while a hold above it could trigger a rebound toward $4,200, Otunuga said.

Factors to Drive Gold Rate

Fed policymakers were divided last month over the rationale for raising rates, with "some participants" seeing a hike as needed to keep the impact of energy and other price shocks at bay, but a more hawkish core viewing it as necessary to guard against emerging demand-driven inflation, theminutes showed.

Traders see only a 21.6 per ceny chance of an October rate hike, but are pricing in an 85 per cent probability of an increase in December, according to the CME's FedWatch tool.

US Federal Reserve Governor Christopher Waller said on Thursday that additional rate hikes would likely be needed, but added there was "flexibility" about the pace of increases and left the door open for a pause in October.

Higher rates dim the appeal of non-yielding gold.

On the geopolitical front, the number of vessels transiting the Strait of Hormuz fell to the lowest in more than two months after attacks on tankers in the key waterway reached their highest last week since the start of the Middle East war, shipping data showed.